UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of report (Date of earliest event reported:)
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February 26, 2025
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Tandy Leather Factory, Inc.
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(Exact Name of Registrant as Specified in Its Charter)
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Delaware
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(State or Other Jurisdiction of Incorporation
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1-12368
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75-2543540
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(Commission File Number)
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(IRS Employer Identification Number)
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1900 Southeast Loop 820, Fort Worth, Texas
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76140
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(Address of Principal Executive Offices)
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(Zip Code)
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(817) 872-3200
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock, par value $0.0024
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TLF
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Nasdaq
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02.
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Results of Operations and Financial Condition
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On February 26, 2025, Tandy Leather Factory, Inc. (the “Company”) issued a press release (the “Press Release”) and filed its Annual Report on Form 10-K
announcing its financial results for fiscal year 2024. A copy of the Press Release is attached as Exhibit 99.1.
The information furnished pursuant to Item 2.02 of this report and the exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934 as amended (the “Exchange Act”, or otherwise subject to liabilities under that section, nor shall they be deemed incorporated by reference in any filing of the Company with the Securities and Exchange Commission
under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
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Item 9.01
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Financial Statements and Exhibits.
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(d) Exhibits
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No.
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Exhibit
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Press Release dated February 26, 2025
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104 |
Cover page interactive data file (embedded within the Inline XBRL
document) |
Forward Looking Statements
Certain statements contained in this report and other materials the Company
files with the SEC, as well as information included in oral statements or other written statements made or to be made by the Company, other than statements of historical fact, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “may,” “will,” “could,” “should,” “anticipate,” “believe,” “budgeted,”
“expect,” “intend,” “plan,” “project,” “potential,” “estimate,” “continue,” “outlook,” “forecast” or “future,” variations thereof or other similar statements. Please refer to the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 2024 for additional information concerning these and other uncertainties that could negatively impact the Company. The Company assumes no obligation to update or otherwise revise its forward-looking statements, except as
required by law.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
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TANDY LEATHER FACTORY, INC.
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Date: February 26, 2025
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By: /s/ Johan Hedberg
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Johan Hedberg, Chief Executive Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
February 26, 2025
Tandy Leather Factory Reports Fourth Quarter and Full Year 2024 Results
FORT WORTH, TEXAS – February 26, 2025 (GLOBE NEWSWIRE) – Tandy Leather Factory, Inc. (Nasdaq: TLF) today announced the Company’s financial results for the fourth fiscal quarter and full year
2024.
Highlights from 2024:
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Revenues were $74.4 million, down 2.4% from 2023
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Generated operating income of $0.6 million
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Net income of $0.8 million, down from $3.8 million in 2023
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Gross margins of 56.2%, down from 59.2% in 2023
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Operating expenses $41.2 million, up 1.0% from 2023
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Adjusted EBITDA* of $2.6 million
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Ended year with $13.3 million of cash and cash equivalents
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Tandy Leather Factory’s fourth quarter sales were $20.5 million in 2024, down from $20.8 million in 2023. Fourth quarter 2024 gross profit was $10.8 million, down from
$11.5 million in 2023. As of December 31, 2024, the Company held $13.3 million of cash and cash equivalents, up from $12.2 million a year earlier. The Company held inventory of $35.6 million, down from $38.0 million as of December 31, 2023. The
Company had basic and diluted net income in the quarter of $0.04 per share, versus $0.23 in the prior year.
The Company’s full year sales were $74.4 million in 2024, down from $76.2 million in 2023. Operating expenses increased to $41.2 million up from $40.8 million in 2023
and increased as a percentage of sales to 55.4% from 53.5% in 2023. 2024 full year gross profit was $41.8 million, or 56.2%, vs $45.2 million, or 59.2%, in 2023. Net income was $0.8 million in 2024, compared to $3.8 million in 2023. Additional
details regarding the Company’s 2024 results can be found in its Annual Report on Form 10-K, filed with the SEC on February 26, 2025.
Johan Hedberg, Chief Executive Officer of the Company, said, “In 2024, against a backdrop of weaker retail sales in the U.S., Tandy was able to slow, but not fully stop,
the trend of decreasing retail sales. At the same time, inflation in labor and materials drove an increase in our operating expenses. While we were able to remain profitable and increase our year-end cash, we are disappointed with the Company’s
results. We were able to return substantial value to our stockholders with the sale of our corporate headquarters building, which closed last month, and the payment this month of a substantial dividend of $1.50 per share.
“Looking ahead to 2025, we hope to drive improved sales in our stores and e-commerce channel and plan to decrease the number of store moves, which led to short-term
sales declines last year. However, we expect that significant costs relating to the move of our headquarters facilities and flagship store in Fort Worth, and shifting from owning to leasing those properties, will negatively impact our ability to be
profitable in 2025, and cause some unavoidable disruption to sales. Our goal is to accomplish this transition as smoothly and efficiently as possible to position the Company for a rebound in both sales and profits in 2026,” Mr. Hedberg continued.
Investors are encouraged to send their questions to the Company’s investor relations hotline at investorrelations@tandyleather.com.
* Adjusted EBITDA is a non-GAAP financial measure that the Company believes helps investors to compare its
operating performance to that of other companies. The following is a reconciliation of the Company’s net income to Adjusted EBITDA (in millions):
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Year ended
December 31, 2024
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Net income
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$
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0.8
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Add back:
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Depreciation and amortization
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1.2
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Interest expense
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(0.3
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Income tax provision
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0.3
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Stock-based compensation
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0.6
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Adjusted EBITDA
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$
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2.6
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Tandy Leather Factory, Inc., (http://www.tandyleather.com), headquartered in Fort Worth, Texas, is a specialty retailer of a broad product line, including leather, leatherworking tools, buckles and adornments for belts, leather dyes and
finishes, saddle and tack hardware, and do-it-yourself kits. The Company distributes its products through its 99 North American stores located in 40 US states and six Canadian provinces, and one store located in Spain. Its common stock trades
on the Nasdaq Capital Market under the symbol “TLF”. To be included on Tandy Leather Factory's email distribution list, go to: http://www.b2i.us/irpass.asp?BzID=1625&to=ea&s=0.
Contact: Johan Hedberg, Tandy Leather Factory, Inc. (817) 872-3200 or johan.hedberg@tandyleather.com
This news release may contain statements regarding future events, occurrences, circumstances, activities, performance, outcomes and
results that are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and
uncertainties include but are not limited to: changes in general economic conditions, negative trends in general consumer-spending levels, failure to realize the anticipated benefits of opening retail stores; availability of hides and leathers and
resultant price fluctuations; change in customer preferences for our product, and other factors disclosed in our filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and except as
required by law, we do not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
